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Johnson & Johnson JNJ

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Trump's Executive Orders on Drug Prices Have Limited Impact on Our Industry FVEs and Moat Ratings

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

President Donald Trump’s executive orders targeting drug prices create modest pricing headwinds and slightly higher uncertainty for drug firms. However, we don’t expect these actions to significantly affect our fair value estimates or moat ratings due to limited details, challenging implementation, and only minor impacts.

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Company Profile

Business Description

Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women’s health. Geographically, just over half of total revenue is generated in the United States.

Contact
One Johnson and Johnson Plaza
New Brunswick, NJ, 08933
T +1 732 524-0400
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type High Yield
Employees 132,200

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